Financial Accounting Question Paper' 2021 (Held in 2022), Dibrugarh University B.Com 1st Sem Hons Question Papers

  Dibrugarh University B.Com 1st Sem Question Papers 
1 SEM TDC FACC (CBCS) C 101
2021 (Held in January/February, 2022)
COMMERCE (Core)
Paper: C-101 (Financial Accounting)
Full Marks: 80
Pass Marks: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) Select the correct answer:                                               1x4=4

(1)      Revenue is considered as being earned when

(a)      Cash is received.

(b)      Production is done.

(c)       Sale is effective.

(2)      Capital expenditure consists of expenditure the benefit of which is not fully consumed in one period but spread over

(a)      Next 3 years.

(b)      Next 5 years.

(c)       Several years.

(3)      Cost of goods sold on hire purchase is transferred to

(a)      Trading Account.

(b)      Profit and Loss Account.

(c)       Profit and Loss Appropriation Account.

(4)      On dissolution of a firm, cash in hand is transferred to

(a)      Realization Account.

(b)      Partners’ Capital Accounts in their profit-sharing ratio.

(c)       Cash Account.

(b) Fill in the blanks:                    1x4=4

(1)       Depreciation is provided on _______ assets.

(2)       A financial lease is a lease where risk and return get transferred to the _______.

(3)       A profit margin of 20% on sale price is equivalent to _______ profit on cost price.

(4)       A _______ branch is one which does not maintain its own set of accounting books to ascertain financial results.

2. Write short notes on (any four):                            4x4=16

(a)       Written-down value method of depreciation.

(b)       Financial lease.

(c)        Independent branch.

(d)       Garner vs. Murray rule.

(e)       Maximum possible loss method of piecemeal distribution.

3. (a) Describe briefly about accounting concepts and accounting conventions of Financial Accounting.     2+2=4

Or

(b) Distinguish between trade discount and cash discount (any four points).  4

Also Read: Financial Accounting Question Papers (Dibrugarh University)

4. (a) Prepare a Purchase Day Book for the month of October 2021 of M/s. Sharma & Co.   5

2021 October 4:	Purchased on credit from Rajesh Bros. & Co. 10 bags of tea @ Rs. 1,000 per bag. 5 bags of coffee @ Rs. 3,000 per bag. Trade discount @ 10%
October 16:	Purchased from Durga Enterprises on credit. 20 bags of rice @ Rs. 800 per bag. 2 bags of wheat @ Rs. 500 per bag. Trade discount @ 5%.
October 20:	Purchased furniture on credit for Rs. 4,000 from Modern Furniture House.
October 25:	Purchased on credit from Sewak & Co. 30 tins ghee @ Rs. 600 per tin. 10 tins mustard oil @ Rs. 500 per tin. Trade discount @ 20%.

Or

(b) Arrange the following balances taken from the ledger of X & Co. into a Trial Balance as on 31^st March, 2021:

	Rs.		Rs.
Cash Trade Debtors Rent Stores Salaries Payable Insurance Other Expenses Trade Creditors Cost of Goods Sold Advance from a Customer	9,200 15,000 4,800 18,000 1,500 3,600 5,500 25,000 54,000 1,400	Land Depreciation Accumulated Depreciation Salaries Furniture Sales Drawings Capital	10,000 800 2,400 20,400 4,000 90,000 2,000 27,000

5. (a) What are the methods of measuring business income? Explain each of them in brief. Also state the objectives of income measurement.  2+4+3=9

Or

(b) When would the following revenues generated from rendering of services to be recognized? 1½ x 6 = 9

(1)       Installation fees.

(2)       Advertising and insurance commission.

(3)       Financial service commission.

(4)       Tuition fees.

(5)       Admission fees.

(6)       Entrance fees and membership fees.

6. (a) What is depreciation? What are the different causes of depreciation? Distinguish between fixed-installment method and diminishing-balance method of depreciation. 2+4+4=10

Or

(b) The following is the Trial Balance of Sri Arup Das as on 31^st March, 2021. Prepare a trading and Profit & Loss A/c for the year ended 31^st March, 2021 and a Balance Sheet as on that date:      3+3+4=10

Trial Balance

As on 31^st March, 2021

Debit Balances	Amount (Rs.)	Credit Balances	Amount (Rs.)
Sundry Debtors Drawings Cash in hand Cash at Bank Wages Purchases Opening Stock Business Premises Bills Receivable Office Telephone Expenses General Expenses Goodwill	22,000 2,000 8,200 30,000 2,500 10,000 30,000 60,000 14,500 3,500 9,000 10,500	Capital Sundry Creditors Sales	1,20,000 22,500 59,700
	2,02,200		2,02,200

Adjustments:

(1)  Value of closing stock as on 31^st March, 2021 was Rs. 5,000.

(2)  Interest on capital to be provided @ 6% and interest on drawings @ 5%.

(3)  Write off bad debts Rs. 2,000 and provide for doubtful debts @ 10% p.a. on remaining debtors.

7. (a) What is ‘hire-purchase system’? What are its features? Distinguish between hire-purchase system and credit sale (only three points).                                          2+4+3=9

Or

(b) Ratan Stores purchased a generator from M/s. Bimal Bros. on installment purchase system. Rs. 12,000 was payable on delivery on 1^st April, 2017 and the balance in four annual installments of Rs. 12,000 each on 31^st March, every year. The vendor charges interest @ 5% per annum on the outstanding balance. The cash price of the generator was              Rs. 54,551. Depreciation @ 10% per annum on written-down method was written off each year. From the above particulars, prepare the following Ledger Accounts in the books of Ratan Stores:        3+3+3=9

(1)  Generator’s A/c.

(2)  M/s. Bimal Bros. A/c.

(3)  Interest Suspense A/c.

8. (a) What are the main classes of Branch Accounts? Explain the method of converting figures of Trial Balance of a foreign branch into the home currency of Head Office.    3+6=9

Or

(b) X Ltd. invoices of goods to its various branches at cost and the branches sell on credit as well as for cash. From the following details relating to Delhi Branch, show the Branch A/c in the Head Office. Also prepare Branch Debtors A/c as a part of working note: 7+2=9

	Rs.
Stock as on 01-04-2020 Stocks as on 31-03-2021 Debtors as on 01-04-2020 Goods received from Head Office Goods-in-transit as on 31-03-2021 Goods returned to Head Office Credit sale Cash sale Discount allowed to customers Goods returned from customers Allowance to customers Bad Debts written-off Cash received from customers General charges Rent and rates Wages and salaries	20,000 16,000 32,500 80,000 7,500 800 88,000 46,000 1,280 2,400 600 3,000 57,300 1,840 4,800 8,200

9. (a) A, B and C are in partnership sharing profits and losses in the ratio of 3 : 2 : 1 respectively. The Balance Sheet of the firm on the date of dissolution was as follows:

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Sundry Creditors A’s Loan A/c A’s Capital B’s Capital	38,500 2,750 15,200 11,200	Cash in hand Sundry Debtors Stock Furniture C’s Capital (Dr.)	9,860 30,560 18,440 7,200 1,590
	67,650		67,650

The assets realized:

(1)      Stock Rs. 13,840,

(2)      Furniture Rs. 5,150, and

(3)      Debtors Rs. 29,200.

(4)      The Creditors were paid less discount Rs. 250.

(5)      C is insolvent and is unable to bring in anything.

(6)      The expenses of realization came to Rs. 520.

Show the Ledger Accounts as per Garner vs. Murray decision. 10

Or

(b) What do you mean by conversion of partnership into a company? What are the objectives of such conversion? What entries are made in the books of a firm, when a partnership business is converted into a company?           2+3+5=10

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